JOHANNESBURG (Reuters) – South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) continued to contract in October, despite improvements in business activity and new sales orders, the survey showed on Friday.
The index, which gauges manufacturing activity in Africa’s most industrialised economy, rose to 48.1 points in October from a revised 45.1 in the previous month, remaining below the 50-point mark that separates expansion from contraction.
“The business activity index increased after two consecutive declines, while new sales orders also improved somewhat from a sharp drop in September,” Absa said in a statement.
“However, both indices remained below the 50-point mark pointing to a decline in demand and output.”
Reporting by Olivia Kumwenda-Mtambo; Editing by Tim Cocks